Fed Governor Cook sues Trump over firing attempt
On Wednesday, BTIG analysts stood firm on their positive stance towards GeneDx (NASDAQ:WGS), reiterating a Buy rating and a $95.00 price target for the company’s stock. With analyst targets ranging from $70 to $118, BTIG’s target sits well within the consensus range for the $1.88 billion market cap company. This affirmation came despite a recent short report that accused GeneDx of reimbursement fraud, which led to an approximate 4% drop in the company’s shares.
The BTIG analysts, after reviewing the short report and discussing with GeneDx management, have concluded that the allegations lack substance and contain several inaccuracies. They emphasized GeneDx’s position as a dominant market leader in rare disease and whole exome testing, and believe the company is set to further penetrate the market. InvestingPro data shows strong revenue growth of 29.4% over the last twelve months, supporting the company’s market expansion narrative. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
GeneDx management has confirmed that the company does not engage in code stacking and bills appropriate CPT codes for genome and exome testing, which are central to its business. The analysts highlighted that GeneDx has already shut down the operations of the legacy company, Sema4, and settled with UnitedHealthcare.
Additionally, the analysts supported GeneDx’s decision to close Centrellis, a business created by the Sema4 team that failed to meet expectations. They also noted that employee morale at GeneDx remains high despite the company parting ways with most of the Sema4 team. The company maintains a healthy financial position with a current ratio of 2.41, indicating strong ability to meet short-term obligations.
The BTIG team referred to GeneDx’s impressive 2,500% gain in 2024 and its achievement of positive adjusted net income last year as justification for the stock’s performance. According to InvestingPro, the stock has delivered an extraordinary 1,825% return over the past year, with a robust gross profit margin of 60.86%. They recommend viewing any share weakness resulting from the negative report as an opportunity to buy. The analysts will be hosting virtual meetings with GeneDx management at the BTIG Snowbird Conference next week, which will allow for further discussion and insights into the company’s operations and prospects. Discover the complete financial health analysis and Fair Value assessment in the exclusive Pro Research Report, available on InvestingPro.
In other recent news, GeneDx, a genetic testing company, has faced accusations of fraudulent practices by Grizzly Research. The firm alleges that GeneDx has engaged in illegal tactics to artificially boost revenue. However, in a contrasting report, GeneDx anticipates a significant increase in revenue for the year and the fourth quarter of 2024, with projected adjusted gross margins of at least 64% for the full year and 68% for the fourth quarter.
TD Cowen has also expressed confidence in GeneDx, raising the stock’s price target and maintaining a Buy rating. The firm’s analysis suggests potential upsides for the company’s financial projections in 2025 and 2026.
In another development, GeneDx has appointed Bryan Dechairo as its new Chief Operating Officer, overseeing several critical departments. This strategic move is aimed at propelling GeneDx into its next growth phase. These developments highlight the contrasting views and recent changes within GeneDx.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.